You should be able to:

LO 4.1 Explain the strategic importance of product and service design

LO4.2 Describe what product and service design does
LO4.3 Name the key questions of product and service design
Product and Service LO4.4 Identify some reasons for design or redesign
LO4.5 List some of the main sources of design ideas
Design
LO4.6 Discuss the importance of legal, ethical, and sustainability
considerations in product and service design
LO4.7 Explain the purpose and goal of life-cycle assessment
LO4.8 Explain the phrase “the 3 Rs”
LO4.9 Briefly describe the phases in product design and development
LO4.10 Discuss several key issues in product or service design
LO4.11 Discuss the two key issues in service design
LO4.12 List the characteristics of well-designed service systems
LO4.13 List some guidelines for successful service design
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 The essence of an organization is the goods and services it Activities and responsibilities of product and service design include:
offers 1. Translate customer wants and needs into product and service
 Every aspect of the organization is structured around requirements
them 2. Refine existing products and services
 Product and service design – or redesign – should be 3. Develop new products and services
closely tied to an organization’s strategy 4. Formulate quality goals
5. Formulate cost targets
6. Construct and test prototypes
7. Document specifications
8. Translate product and service specifications into process
specifications
9. Involve inter-functional collaboration

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1. Is there a demand for it? 3. What level of quality is appropriate?

 Market size  Customer expectations
 Demand profile  Competitor quality
2. Can we do it?  Fit with current offering
 Manufacturability - the capability of an organization 4. Does it make sense from an economic
to produce an item at an acceptable profit standpoint?
 Serviceability - the capability of an organization to  Liability issues, ethical considerations, sustainability
provide a service at an acceptable cost or profit issues, costs and profits

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 The driving forces for product and service design or 1. Supply-chain based
redesign are market opportunities or threats: 2. Competitor based
 Economic
 Social and demographic 3. Research based
 Political, liability, or legal
 Competitive
 Cost or availability
 Technological

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 Ideas can come from anywhere in the supply  By studying how a competitor operates and its
chain: products and services, many useful ideas can be
 Customers generated
 Suppliers  Reverse engineering
 Distributors  Dismantling and inspecting a competitor’s product to
 Employees discover product improvements
 Maintenance and repair personnel

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 Research and development (R&D)  Legal considerations

 Organized efforts to increase scientific knowledge or product  Product liability
innovation
 The responsibility a manufacturer has for any injuries or
 Basic research
damages caused by a faulty product
 Has the objective of advancing the state of knowledge about a
subject without any near-term expectation of commercial  Some of the concomitant costs
applications  Litigation
 Applied research  Legal and insurance costs
 Has the objective of achieving commercial applications  Settlement costs
 Development  Costly product recalls
 Converts the results of applied research into useful commercial  Reputation effects
applications  Uniform Commercial Code
 Under the UCC, products carry an implication of
merchantability and fitness

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 Designers are often under pressure to  Human factors
 Speed up the design process  Safety and liability
 Cut costs  Cultural factors
 These pressures force trade-off decisions  Colors, preferred food, product labels
 What if a product has bugs?  Global design
 Release the product and risk damage to your reputation  Design teams can be in different countries
 Work out the bugs and forego revenue

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 Sustainability  Cradle-to-Grave Assessment

 Using resources in ways that do not harm ecological systems that  aka life cycle analysis (LCA)
support human existence  The assessment of the environmental impact of a
 Key aspects of designing for sustainability product or service throughout its useful life
 Cradle-to-grave assessment (life cycle analysis)  Focuses on such factors as
 End-of-life programs  Global warming
 Smog formation
 The 3-Rs
 Oxygen depletion
 Reduction of costs and materials used
 Solid waste generation
 Re-using parts of returned products
 LCA procedures are part of the ISO 14000 environmental
 Recycling
management procedures

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Designers often reflect on three particular aspects

of potential cost savings and reducing  Value analysis
 Examination of the function of parts and materials in an effort to
environmental impact
reduce the cost and/or improve the performance of a product
 Common questions used in value analysis
 Reduce
 Is the item necessary; does it have value; could it be eliminated?
 Reuse  Are there alternative sources for the item?
 Recycle  Could another material, part, or service be used instead?
 Can two or more parts be combined?
 Can specifications be less stringent to save time or money?
 Do suppliers/providers have suggestions for improvements?
 Can packaging be improved or made less costly?

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  Remanufacturing  Recycling
 Refurbishing used products by replacing worn-out or  Recovering materials for future use
defective components  Applies to manufactured parts
 Also applies to materials used during production
 Can be performed by the original manufacturer or another
company  Why recycle?
 Cost savings
 Reasons to remanufacture:
 Environmental concerns
 Remanufactured products can be sold for about 50% of the cost of a  Environmental regulations
new product
 Companies doing business in the EU must show that a specified
 The process requires mostly unskilled and semi-skilled workers proportion of their products are recyclable
 In the global market, European lawmakers are increasingly  Design for recycling (DFR)
requiring manufacturers to take back used products  Product design that takes into account the ability to disassemble
 Design for disassembly (DFD) a used product to recover the recyclable parts
 Designing a product to that used products can be easily taken apart

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 Standardization
 Extent to which there is an absence of variety in a
product, service, or process
 Products are made in large quantities of identical items
 Every customer or item processed receives essentially the
same service

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 Mass customization
 A strategy of producing basically standardized goods or
services, but incorporating some degree of
customization in the final product or service
 Facilitating techniques
 Delayed differentiation
 Modular design

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  Delayed differentiation  Modular design
 A form of standardization in which component parts are grouped
 The process of producing a product or service but not
into modules that are easily replaced or interchanged
quite completing production until customer preferences  Advantages
are known  Easier diagnosis and remedy of failures
 It is a postponement tactic  Easier repair and replacement
 Produce a piece of furniture, but do not stain it; the customer  Simplification of manufacturing and assembly
chooses the stain
 Training costs are relatively low
 Disadvantages
 Limited number of possible product configurations
 Limited ability to repair a faulty module; if it cannot be
disassembled, the entire module must often be scrapped

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 Reliability
 The ability of a product, part, or system to perform its
intended function under a prescribed set of conditions
 Failure
 Situation in which a product, part, or system does not
perform as intended

 Reliabilities are always specified with respect to

certain conditions
 Normal operating conditions
 The set of conditions under which an item’s reliability is
specified

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 Robust design  Product or service design changes:

 A design that results in products or services that can 1. Modification of an existing product or service
function over a broad range of conditions 2. Expansion of an existing product line or service offering
3. Clone of a competitor’s product or service
 The more robust a product or service, the less likely it will fail
due to a change in the environment in which it is used or in 4. New product or service
which it is performed  The degree of change affects the newness of the product or
 Pertains to product as well as process design service to the market and to the organization
 Consider the following automobiles:  Risks and benefits?
 Ferrari Enzo
 Toyota Avalon
 Which is design is more robust?

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  Quality Function Deployment (QFD)
 An approach that integrates the “voice of the customer”
into both product and service development
 The purpose is to ensure that customer requirements are
factored into every aspect of the process
 Listening to and understanding the customer is the central
feature of QFD
 House of Quality

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 Basic quality
 Refers to customer requirements that have only limited effect on
customer satisfaction if present, but lead to dissatisfaction if absent
 Performance quality
 Refers to customer requirements that generate satisfaction or
dissatisfaction in proportion to their level of functionality and
appeal
 Excitement quality
 Refers to a feature or attribute that was unexpected by the customer
and causes excitement

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1. Feasibility analysis
2. Product specifications
3. Process specifications
4. Prototype development
5. Design review
6. Market test
7. Product introduction
8. Follow-up evaluation

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  CAD
 Concurrent engineering  Product design using computer graphics
 Bringing engineering design and manufacturing  Advantages
personnel together early in the design phase  Increases productivity of designers, 3 to 10 times
 Also may involve manufacturing, marketing and purchasing  Creates a database for manufacturing information and product
specifications
personnel in loosely integrated cross-functional teams
 Provides possibility of engineering and cost analysis on proposed
 Views of suppliers and customers may also be sought designs
 The purpose is to achieve product designs that reflect  CAD that includes finite element analysis (FEA) can significantly reduce
time to market
customer wants as well as manufacturing capabilities
 Enables developers to perform simulations that aid in the design,
analysis, and commercialization of new products

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 Designers must take into account production  Manufacturability

capabilities  Ease of fabrication and/or assembly
 Equipment  It has important implications for
 Skills  Cost
 Types of materials  Productivity
 Quality
 Schedules
 Design for manufacturing
 Technologies
 Special abilities  Design for assembly

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 When products have a high degree of similarity in features  Begins with a choice of service strategy, which
and components, a part can be used in multiple products determines the nature and focus of the service, and
 Benefits: the target market
 Savings in design time  Key issues in service design
 Standard training for assembly and installation  Degree of variation in service requirements
 Opportunities to buy in bulk from suppliers  Degree of customer contact and involvement
 Commonality of parts for repair
 Fewer inventory items must be handled

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 1. Conceptualize
1. Products are generally tangible; services are intangible • Idea generation
2. Services are created and delivered at the same time • Assessment of customer wants/needs
3. Services cannot be inventoried • Assessment of demand potential

4. Services are highly visible to consumers 2. Identify service package components needed
5. Some services have low barriers to entry and exit 3. Determine performance specifications
6. Location is often important to service design, with convenience 4. Translate performance specifications into design
as a major factor specifications
7. Service systems range from those with little or no customer 5. Translate design specifications into delivery specifications
contact to those that have a very high degree of customer
contact
8. Demand variability alternately creates waiting lines or idle
service resources
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 Characteristics 1. Define the service package in detail

 Consistent with the organization mission 2. Focus on the operation from the customer’s perspective
 User-friendly 3. Consider the image that the service package will present both to
 Robust if variability is a factor customers and to prospective customers
 Easy to sustain 4. Recognize that designers’ familiarity with the system may give them
 Cost-effective a quite different perspective than that of the customer, and take steps
 Has value that is obvious to the customer to overcome this
 Has effective linkages between back- and front-of-the-house 5. Make sure that managers are involved and will support the design
operations once it is implemented
 Has a single, unifying theme 6. Define quality for both tangibles and intangibles
 Has design features and checks that will ensure service that is 7. Make sure that recruitment, training, and reward policies are
reliable and of high quality consistent with service expectations
8. Establish procedures to handle both predictable and unpredictable
events
9. Establish system to monitor, maintain, and improve service

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 Effective product and service design can help the

organization achieve competitive advantage:
 Packaging products and ancillary services to increase sales
 Using multiple-use platforms
 Implementing tactics that will achieve the benefits of high volume
while satisfying customer needs for variety
 Continually monitoring products and services for small
improvement opportunities
 Reducing the time it takes to get a new or redesigned product or
service to the market

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